The article explores how interest rates and bank size affect the profitability of Islamic banks in Pakistan. They looked at factors like GDP, inflation, and exchange rates, as well as bank-specific variables such as credit risk and capital adequacy. The study found that interest rates and exchange rates have a negative impact on profitability, while asset quality and capital adequacy have a positive impact. Bank size and interest rates can also influence factors like credit risk and asset quality. This research can help policymakers and bank managers understand how to improve the profitability of Islamic banks in Pakistan.